Thank you for such a great article on one of my favourite places on this planet, Lake Atitlan. Your photo of the Pana market portrays perfectly what a colourful and lively place it is, happy you found such a good deal on macadamia nuts there :)
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Yes, I've lived in near different villages there for up to three months, the last time on the lake near La Iguana Perdida hostel below Santa Cruz. You're so right about safety. Though I travel alone and am of "a different generation" (smiley here) I've always felt really safe there, even trudging country roads.